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On 16 November 2016 the Sejm (lower chamber of the Parliament) adopted a bill to amend the VAT Act and certain other statutory laws, calling for numerous changes in the VAT Act and the Criminal Fiscal Code, among other laws.

With 125+ locations in 50+ countries, Dentons is home to top-tier talent that is found at the intersection of geography, industry knowledge and substantive legal experience. Working with Dentons, you will have the opportunity to learn from the best lawyers in the industry at the largest law firm in the world.

Dentons is proud to congratulate our six lawyers who are listed as “Canada’s Leading Litigation Lawyers” by Lexpert, in its 2016 special edition that profiles Lexpert-ranked lawyers in several areas of business-related litigation.

Dentons Rodyk & Davidson LLP, part of the world’s largest law firm, Dentons, is pleased to announce that John Dick has joined the Firm as part of its Energy, Resources and Infrastructure practice and its South East Asia regional practice.

2015

Risks and opportunities - and not just for energy companies

2015 promises to be another year of new risks and opportunities for both established players and new entrants, funders and investors in the UK energy scene. Things to watch include:

Winners and losers in the first Capacity Market and Contracts for Difference (CfDs) auctions will no doubt argue with Government and Ofgem about whether the process delivered the "right" results (the CfD auction having already been postponed from December 2014 to February 2015, to resolve appeals). There has already been litigation activity over both the award of CfDs and alleged bias against demand response in the Capacity Market regime.

The Competition and Markets Authority will conclude their wide-ranging inquiry into GB energy supply markets in November or December 2015.

After the 2014 Scottish "no" vote averted some potentially big changes, the 2015 General Election may bring significant (and not necessarily predictable) changes in the energy field.

Technology, Government incentives and rising energy costs put energy efficiency centre-stage for both businesses and policymakers. From energy audits to smart meters and demand side response, this is an area of huge commercial opportunity and likely growth in regulation. Meanwhile, more businesses may start to produce energy as technologies such as larger-scale rooftop solar and anaerobic digestion, as well as community energy schemes, gain momentum.

The conclusions of some recent Ofgem enforcement cases and the policy behind the new oil and gas authority point towards regulators making more assertive use of their powers.

The detail of EU regulation designed to make a single EU market in electricity and gas a reality will continue to unfold. There is the prospect of significantly increased interconnection between the UK and (sometimes lower-priced) electricity markets elsewhere in the EU. An additional and partly geo-political challenge for EU policymakers is energy security.

By the end of 2015 it should finally be clear which of the coal-fired plants will choose to upgrade to comply with the Industrial Emissions Directive. Those which choose to "opt out" of it will have to close after a limited number of hours. Current low prices for coal (a by-product of abundant US shale gas) mean the choices made by these plants have a significant impact on wholesale electricity prices.

The EU will need to make its mind up about the "2030" targets to replace its goals for greenhouse gas emissions, renewables deployment and energy savings for 2020. The EU’s decisions (in the context of the hoped-for overall international deal on climate change matters) will have an impact on all businesses affected by current EU legislation in these areas.

2014

Oil and gas

The Government has made continued efforts to combat declining UK offshore oil and gas productivity; the challenges of falling oil prices; and potentially more attractive markets elsewhere in the world. Its efforts include a mixture of tax breaks (most recently in the Chancellor's Autumn Statement) and the implementation of a more proactive approach to regulation of the UK Continental Shelf.

Onshore, the Government remains keen to stimulate unconventional development (shale gas/fracking) with fiscal incentives and other facilitative measures, including new production, exploration and development licence conditions and a "statutory right to exploit "deep-level land".

Power

December 2014 saw the UK Government's Electricity Market Reform begin to go live. This will significantly alter the economics of the generating sector (for generators of both renewable and other types of electricity), and the mix of costs that make up any business's energy bills.

In June 2014, the Competition and Markets Authority began an investigation into the supply of electricity and gas in Great Britain. This could lead to significant changes in the structure and regulation of these markets. Various concerns prompted the inquiry, in particular: the pricing behaviour of the "Big 6" suppliers; their large shares of both generation and supply (retail); and the reported difficulties of smaller players seeking to enter or expand their share of the latter market. These concerns were set against a background of apparent consumer failure to switch when dissatisfied with the incumbent.

It was another year of steady progress for the Government's efforts to develop the UK nuclear industry. The CfD for the proposed new Hinkley Point C nuclear power station received approval from the European Commission. The Court of Appeal dismissed the challenge brought by the National Trust of Ireland against the development consent for Hinkley Point C. The Government launched a new long-term plan to deal with the UK's radioactive waste.

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"Unconventional" onshore oil and gas extraction is likely to play a greater role in the UK energy economy, as changing production economics, advances in oilfield technology and energy security pressures trigger a range of Government announcements intended to create a clear investment pathway for shale gas and oil.

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